Page:United States Statutes at Large Volume 68A.djvu/348

 308

INTERNAL REVENUE CODE OF 1954

-

for amounts representing taxes and interest paid to a cooperative housing corporation) in a cooperative housing corporation (as defined in such section) if— (1) in the case of stock sold, the house or apartment which the taxpayer was entitled to occupy as such stockholder was used by him as his principal residence, and (2) in the case of stock purchased, the taxpayer used as his principal residence the house or apartment which he was entitled to occupy as such stockholder. (g) HUSBAND AND W I F E. — I f the taxpayer and his spouse, in accord-

ance with regulations which shall be prescribed by the Secretary or his delegate pursuant to this subsection, consent to the application of paragraph (2) of this subsection, then— (1) for purposes of this section— (A) the taxpayer's adjusted sales price of the old residence is the adjusted sales price (of the taxpayer, or of the taxpayer and his spouse) of the old residence, and (B) the taxpayer's cost of purchasing the new residence is the cost (to the taxpayer, his spouse, or both) of purchasing the new residence (whether held by the taxpayer, his spouse, or the taxpayer and his spouse); and (2) so much of the gain on the sale of the old residence as is not recognized solely by reason of this subsection, and so much of the adjustment under subsection (e) to the basis of the new residence as results solely from this subsection shall be allocated between the taxpayer and his spouse as provided in such regulations. This subsection shall apply only if the old residence and the new residence are each used by the taxpayer and his spouse as their principal residence. I n case the taxpayer and his spouse do not consent to the application of paragraph (2) of this subsection then the recognition of gain on the sale of the old residence shall be determined under this section without regard to the rules provided in this subsection. (h) M E M B E R S OF ARMED FOR C E S. — The running of any period of time specified in subsection (a) or (c) (other than the 1 year referred to in subsection (c)(4)) shall be suspended during any time that the taxpayer (or his spouse if the old residence and the new residence are each used by the taxpayer and his spouse as their principal residence) serves on extended active duty with the Armed Forces of the United States after the date of the sale of the old residence and during an induction period (as defined in section 112(c)(5)) except that any such period of time as so suspended shall not extend beyond the date 4 years after the date of the sale of the old residence. For purposes of this subsection, the term "extended active d u t y " means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. (i) SPECIAL RULE FOR INVOLUNTARY CONVERSIONS.—

(1) IN GENERAL.—For purposes of this section, the destruction, theft, seizure, requisition, or condemnation of property, or the sale or exchange of property under threat or imminence thereof— (A) if occurring after December 31, 1950, and before January 1, 1954, shall be treated as the sale of such property; and (B) if occurring after December 31, 1953, shall not be treated as the sale of such property. § 1034(f)

�